Nexus between quality of smartphone online banking application and customer retention

Abstract

Nexus between quality of smart phone online banking application and customer retention is still obscure as per the previous finding, particularly in Matale district. Objectives of the study have three folds, first, to identify the extent of quality of the smartphone online banking application as well as customer retention, second, to examine the impact of smartphone online banking application on customer retention and third, to examine whether quality of the smartphone online banking application varies among demographic factors of customers in selected banks. The study was undertaken by collecting the data from two hundred banking app users of selected banks in Matale via structured questionnaire (Google Form). Univariate, bivariate analysis (correlation and regression) and ANOVA and Independent Sample T test were applied to analyze the data with SPSS. Results showed that, perceived usefulness, perceived ease of use and perceived trust are very high level though the perceived risk is very low level. Further, perceived usefulness, perceived ease of use and perceived trust are positively and significantly associated with customer retention while it has a negative insignificant relationship with perceived risk. Finally, it is concluded that perceived usefulness, perceived ease of use, perceived trust positively and significantly impacts on customer retention, whereas perceived risk insignificant negative impacts on customer retention. Moreover, perceived quality of the smartphone online banking application varies among types of occupation of customers while perceived ease of use is varied among educational level. Findings of the study would be helpful to software designers and managers of banks to further enrich the applications to retain the customers.